Foreign Direct Investment (FDI) has long been a subject of interest. Thisinterest has been renewed in recent years due to the strong expansion ofworld FDI flows recorded since the 1980s, an expansion that has made FDIeven more important than trade as a vehicle for international economicintegration. Given this fact, it should come as no surprise that a large numberof theoretical explanations as to the very existence of FDI have beenadvanced over the years, with many studies focusing on the investigation ofthe determinants of such investment. However, despite the abundance ofresearch, there is at present no universally accepted model of FDI, there isstill some confusion over what are the key factors capable of explaining acountry’s propensity to attract investment by multinational enterprises(MNEs) and it is not yet clear how globalization is likely to influence thedeterminants of, and motivations for, FDI. These unresolved issues are ofspecial importance to developing countries that now more than ever seek toattract FDI to fuel economic growth.